Gay or Straight, Marriage Gets Pricier

By Kelli B. Grant

President Obama’s endorsement of same-sex marriage this week propelled the controversial social issue back into the national spotlight, just six months before the November elections. But while politicians and pundits debate the ethical and religious implications, advisers point out that the costs of marriage – and its ugly flipside, divorce – are soaring, even as many Americans’ salaries remain stagnant.

First, the positive spin. At the state and national level, experts say more marriage is a good thing, from a financial standpoint at least. Indeed, some studies suggest that if the right of same-sex couples to wed were granted nationally, the policy could generate hundreds of millions in extra revenue. For example, one study conducted this year by the Williams Institute for Sexual Orientation Law and Public Policy at UCLA estimated that New Jersey would generate $48 million to $119 million over three years if same-sex marriage was allowed. The gains would come mostly from the spending on the weddings themselves, although some experts say these couples could put more money into the economy over time, due to long-term savings from filing joint tax returns.

But for couples – straight and gay – marriage can mean higher costs, especially when it leads to divorce. One big reason for the spike, say experts, is that marriage and divorce now come with even more financial strings attached. For example, more than half of divorce attorneys say they have seen a rise in women paying child support over the past three years, according to a new survey from the American Academy of Matrimonial Lawyers. And nearly half have seen a rise in women paying alimony. “Everything has gotten more expensive,” says Michael Goodman, a certified public accountant and president of Wealthstream Advisors in New York City.

SmartMoney.com talked to financial planners, accountants and other experts to find out ways that saying “I do” means more spending now (or later if you decide you don’t).